Guide to Buying a House
1. Prepare
Like so many things in life, when it comes to buying Real Estate, proper preparation is one of the keys to success. Don't want to find yourself in a neighborhood you don't like? Don't want to be making mortgage payments on a house in which you are uncomfortable? Don't want to waste your time falling in love with houses you can't afford? Prepare a gameplan. Prepare a needs and wants to deternube what types of house you should be considering. It can help to avoid either a nasty disappointment or the pain of buying more house than you need (or can afford). Distinguishing needs from wants will go a long way in preventing expensive mistakes in the house buying process. Establish some basic parameters and stick to them. When house hunting, it is easy to get swayed by the emotion of the moment--and end up with more house than will be financially comfortable.
Example of needs and wants >Click here
2. Mortgages
Probably one of the reasons that buying a home is such an emotional experience is because not only do you have the actual house buying to deal with, but for most home buyers you also have the mortgage process to encounter. This can be a smooth and almost uneventful process, or an unnerving one. A great deal depends on the preparation of the buyer as well as the selection of an efficient mortgage company. Many real estate buyers are cloudy on the distinctions between what constitutes prequalification, preapproval, and final approval or commitment. >Click for more info
>Types of mortgages
6 Things to remenber:
- Prepare
- Mortgages
- "The Players"
- Negotiating
- Inspections
- Closing
Buying real estate will probably be the biggest purchase of your life, but it doesn't have to be the
most stressful! With a well coordinated plan, it is possible to buy a home without
causing a major disruption in your life.
3. "The Players"
Real Estate is never bought and sold on your own. Even if you handle the majority of the transaction yourself by buying directly from an owner, you will still need to have interaction with others due to legal and financial considerations. The vast majority of home buyers enlist the services of a Real Estate Agent, a Lender, a Professional Home Inspector, and a Closing Attorney or Escrow Agent. Knowing what each is responsible for will help your understanding of the process and eliminate confusion as you proceed. Examples of "The Players" are:
4. Negotiating
Real Estate is one of the few places (along with the automobile business) in American life where some form of negotiation is the rule rather than the exception. Just because it is the norm, however, does not mean that most people are proficient at it. Sure, many folks feel that they are the best negotiators in the world, but in reality, it is a learned art. It takes a keen understanding of the process in order to be a good negotiator.
When it comes to Real Estate matters, the 3 most important aspects of an effective negotiation are:
1) Information
2) Preparation
3) Realism
Recognizing that being a good negotiator does not come naturally to most people--it must be worked at--is the first step in becoming one.
5. Inspections
After you have found a property that meets your budget and needs, the next step is to determine whether the physical condition of the property will be acceptable. All Real Estate is definitely not created equal--there is a great variance in the way individual homeowners maintain their properties. In addition, you need to be aware of any hidden defects that could substantially affect the value of the home. The only way to safely determine the condition of a property is to take advantage of every opportunity you have to inspect it.
Depending on the type of financing you choose, there should be either 2 or 3 separate inspections on the home you want to purchase. The first should be your own basic inspection (see the link at the bottom of this page for what to look for), the second should be a professional whole-house inspection by a reputable person. Should you select a government loan (FHA or VA), the third inspection should come at the time of the appraisal, which to some degree amounts to a "mini-inspection." You should not, however, depend on the appraisal to disclose potential defects in the property. >Click here
6. Closing
After the searching for a home is done, the negotiations have been completed, the house has been inspected, and the mortgage has been applied for and committed to, the focus suddenly turns to the Closing, Settlement, or Escrow as it is known in some localities. For simplicity, in our discussions here we will refer to the process when it all comes together and you finally own the home as Closing. An understanding of the elements of and players in the closing, as well as a concise preparation for it, will eliminate many nervous hours as the day approaches.
>Click here for forms involved
>Click here for the 12 steps how to save on home insurance
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